HOUSTON – Oil prices slid on Oct 8, settling down more than 4 per cent on news of a possible ceasefire between Hezbollah and Israel, although prices found some support on fears of a potential attack on Iranian oil infrastructure.
Brent crude futures settled down US$3.75, or 4.63 per cent, at US$77.18 a barrel. US West Texas Intermediate futures finished down US$3.57, or 4.63 per cent, at US$73.57 a barrel. At their session lows, both were down more than US$4 a barrel.
“We continue to be very headline-dependent,” said Mr John Kilduff, partner with Again Capital. “This morning, we heard about the potential ceasefire. Then we got indications targets are still being dialled in and energy targets are in the mix.”
Said Mr Phil Flynn, senior analyst at Price Futures Group: “That Hezbollah is open to a ceasefire, is the kind of headline that people jump on. There should be a lot of volatility up and down on this conflict.”
On Oct 7, Brent rose above US$80 per barrel for the first time since August after more than a 3 per cent daily gain. That followed the largest weekly climb in over a year, roughly 8 per cent, in the week to Oct 4 on rising concerns of a spreading war in the Middle East.
Hezbollah left the door open to a negotiated ceasefire after Israeli forces raised the stakes in the conflict with its Iran-backed enemy by making new incursions in the south of Lebanon.
Israeli defence minister Yoav Gallant said it appeared the replacement for slain Hezbollah leader Sayyed Hassan Nasrallah had also been eliminated.
Late on Oct 8, Israel’s military warned people to stay away from specific buildings in the southern suburbs of Beirut.
The oil price rally began after Iran launched a missile barrage at